Kia Motors Corp. (000270.KS: Quote, Profile , Research), South Korea's No.2 auto maker, has set a price guidance of around 90 basis points over midswaps for its five-year dollar bond sale, a source close to the deal said on Tuesday.
The benchmark-sized offering is being handled by Credit Suisse (CSGN.VX: Quote, Profile , Research), JPMorgan (JPM.N: Quote, Profile , Research), Korea Development Bank and UBS (UBSN.VX: Quote, Profile , Research) (UBS.N: Quote, Profile , Research).
Investor presentations are taking place in Hong Kong on June 26 and in London on June 27.
Last month, Kia reported a net loss for a third consecutive quarter as it was hurt by weaker sales, higher marketing expenses, costlier raw materials and a firmer won.
The 2007 outlook for the affiliate of the country's top car maker, Hyundai Motor Co. (005380.KS: Quote, Profile , Research), has some bright spots with its new Slovakia plant beginning mass production and expected growth in local sales, which carry higher margins.
Kia is rated Baa3 by Moody's Investors Service and BBB-minus by Standard & Poor's Ratings Services.
